TLDR
- USA Rare Earth shares jumped 16.15% to $25.69 following the White House’s announcement of Project Vault, a $12 billion strategic minerals stockpile initiative
- The program combines $1.67 billion in private capital with a $10 billion Export-Import Bank loan to secure critical rare earth materials
- USAR’s Stillwater magnet facility in Oklahoma nears commercial production with commissioning expected in early 2026
- The company strengthened its balance sheet with $1.5 billion PIPE financing completed in January 2026, bringing total cash to over $400 million
- Q4 2025 earnings release scheduled for February 5, with consensus estimate of 12 cents loss per share
USA Rare Earth, Inc. (NASDAQ: USAR) experienced a significant rally in today’s trading session, with shares climbing 16.15% to reach $25.69 as of 3:11:22 PM EST. The surge comes on the heels of a major policy announcement from the White House that could reshape the domestic rare earth minerals industry and significantly benefit the company’s long-term prospects.
Project Vault Signals Government Commitment To Rare Earth Independence
The White House unveiled Project Vault, an ambitious $12 billion initiative designed to establish a strategic minerals stockpile and reduce American dependence on Chinese rare earth supplies. The program secures critical materials such as neodymium and praseodymium (NdPr), essential components in high-tech manufacturing and defense applications.
The financing structure combines $1.67 billion in private capital with a $10 billion Export-Import Bank loan, demonstrating coordinated government-industry action to address supply chain vulnerabilities.
The announcement carries particular significance given recent market volatility. USA Rare Earth experienced a sell-off last week after reports that the administration retreated from guaranteed pricing mechanisms. Today’s stockpile plan addresses those concerns by signaling government intervention on the demand side rather than through direct price controls.
Strategic Positioning Through Domestic Production
The administration’s outreach to major automotive manufacturers and technology companies suggests a strategy to create domestic demand anchors for critical minerals and magnets. This approach could improve long-term offtake visibility for American rare earth developers, particularly benefiting USA Rare Earth’s Stillwater, Oklahoma facility.
The Stillwater plant represents one of the first large-scale magnet production facilities in the United States. Designed to produce Neodymium Iron Boron (NdFeB) magnets, the facility will serve defense, aviation, automotive, and other high-growth sectors. The company is installing key equipment and assembling Line 1a, with commissioning targeted for early 2026.
Financial Strengthening And Strategic Acquisitions
USA Rare Earth completed $1.5 billion in PIPE financing during January 2026, bringing total cash reserves to more than $400 million. These funds are being allocated toward plant upgrades, expanded magnet finishing capabilities, and completion of Line 1b, which will increase total NdFeB magnet production capacity to approximately 1,200 metric tons.
The November 2025 acquisition of Less Common Metals strengthens the supply chain by providing critical feedstock for the Stillwater facility. In December 2025, LCM partnered with Solvay and Arnold Magnetic Technologies Corp. to ensure a stable source of premium-quality rare earth materials.
Q4 Earnings Outlook And Operational Challenges
USA Rare Earth is scheduled to report fourth-quarter 2025 results on February 5. The Zacks Consensus Estimate anticipates a loss of 12 cents per share, revised downward from seven cents over the past 60 days.
The company continues navigating challenges inherent to its pre-revenue stage. Rising operational expenses, particularly selling, general, and administrative costs driven by legal fees, consulting expenses, and increased headcount, continue pressuring margins.
Despite near-term profitability challenges, the stock has delivered exceptional returns, gaining 115.92% year-to-date and 97.65% over the past year, substantially outperforming the S&P 500’s 0.64% and 14.93% returns respectively.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
